Harting Sales and Service, Inc



National & World Ag News Headlines
KC Fed: Ag Loan Volume Dropped to Lowest Level Since 2012
USAgNet - 01/14/2022

Smaller sized loans limited agricultural lending activity at the end of 2021. According to the Survey of Terms of Lending to Farmers, non-real estate agricultural loans at commercial banks decreased by 13% in the fourth quarter and the yearly average was the lowest since 2012.

The decline was driven by a sharp drop in operating loans and lending at banks with the largest farm loan portfolios. Despite an increase in the number of all types of loans, the average size of all non-real estate and operating loans was more than 20% and 30% less than a year ago, respectively.

Loan sizes decreased considerably at lenders of all sizes, but the number of loans increased notably at small and mid-sized lenders and decreased at banks with large agricultural portfolios.

Broadly, conditions in the agricultural economy remained strong through 2021 and continued to support farm finances. Despite intensifying concerns about rising input costs impacting producer returns in the coming year, commodity prices remained elevated and supported profit opportunities through the end of the year. Higher costs are likely to put upward pressure on demand for credit, but strong farm income and working capital could also supplement financing for some borrowers.


Other National Headlines
International Protein Sires
Meyer Manufacturing
Copyright © 2022 - Farms.com. All Rights Reserved.